ICT Mentorship
Month 1 Core Content:
How Market Makers Condition The Market
Braveheart Trading Study Notes
Disclaimer:
None of the contents within this PDF should be considered professional advice.
It is merely for entertainment purposes only.
If you have been following me on YouTube lately, you know that I help Traders reach their full
trading potential.
The aim is to be the bridge between who Traders currently are and who they want to become.
With that being said, the concepts mentioned in belong to "The Inner Circle Trader".
https://www.youtube.com/c/InnerCircleTrader
All the information within this PDF can be found on The Inner Circle Trader's YouTube Channel.
Braveheart Trading
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New Aspiring Traders are part of “Speculative Uninformed Money”.
Speculative Uninformed Money has no awareness that Smart Money exists.
Speculative Uninformed Money believes that they control the market via Supply and Demand.
They believe the quantity of Speculative Uninformed Money is "enough" to move the market as a whole.
This can be no further than the truth.
Sadly this is what everyone is taught in Books, Seminars, and lectures.
Smart Money is the Central Banks.
The Central Banks are the entities that control the nancial markets.
Speculative Uninformed Money is a victim of Smart Money and has no involvement in moving the nancial markets.
Smart Money is the only entity that in uences the market and is the source of every price move.
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Not the “Supply and Demand” from Speculative Uninformed Money.
Begin the transition from Speculative Uninformed Money to Smart Money.
There must be a complete paradigm shift in your thought process.
You must be thinking in terms of an e cient market.
The markets are only e cient for Smart Money.
If the market was a battle eld:
Speculative Uninformed Money is the Market’s Prey.
Smart Money is the Market’s Predator.
Failure to understand this will forever make you a Victim of Smart Money.
This business belongs to them since they are the Liquidity Providers.
Any other market participants opposing Smart Money are Willing & Unwilling Liquidity.
Central Banks
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Victims
The Markets are controlled by an Arti cial Intelligence (IPDA) that delivers price.
IPDA is designed to instill as much Fear and Greed into the markets.
IPDA understands that Fear and Greed are how the markets will always operate.
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ICT shows aspiring traders how to track the movements of IPDA.
The characteristics are repeatable and occur frequently.
By viewing the markets from the perspective of IPDA, you become aligned with the
Liquidity Providers and therefore follow Smart Money.
Let us refer back to
“Elements of a Trade Setup.”
Price Delivery
Price Delivery is how the Interbank feeds delivery to all market participants.
Consolidation
Everything must start with a Consolidation because that is when orders are
building up above and below the market.
Consolidation
After consolidation, we expect movement in the form of an Expansion.
This is when we are allowed the decision to take action.
Expansion
After consolidation, we expect movement in the form of an Expansion.
We then determine if that Expansion leads toward a Reversal or Retracement.
2 Mistakes Interbank Trader’s Make!
1. Price can NOT go from a Consolidation to Retracement.
2 Mistakes Interbank Trader’s Make!
2. Price can NOT go from a Consolidation to Reversal.
Price can go from a Consolidation to Expansion
After an Consolidation, we ALWAYS expect an Expansion
Then we decide if that Expansion will lead to a Retracement or Reversal.
Bearish
Directional Bias
These are the only options Price Delivery can resort towards.
Once you understand what the Direction Bias is,
Price Delivery becomes obvious in what it wants to do.
If Expansion into Reversal:
If price reverses after an expansion…
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We can expect a displacement opposing the direction of the Expansion prior.
Reversals are heavily in uenced by Time Theory.
If Expansion into Retracement
If the price retraces after an Expansion…
We can expect another displacement in the same direction as the Expansion prior.
Time Theory influences Price Delivery
If you are trading the Weekly Range:
- Price Delivery is “Day of Week” sensitive.
If you are trading the Daily Range or Session:
- Price Delivery is “Kill Zone” sensitive.
IOF Ref. Point
Time Theory
Correlated Markets influences Price Delivery
Cross Currency Relationships:
- Using Cross Currency Pairs to serve as a Relative Strength Index. (I.e EurGbp for EurUsd & GbpUsd)
IOF Ref. Point
Correlated Markets
Positively Correlated Markets VS Inversely Correlated Markets:
- Comparing highs and lows of correlated markets for Smart Money Divergences. (I.e Dollar Index VS EurUsd)
Time Theory
How Does Price Delivery influence Session Trading?
Step 1: Price goes into another Consolidation before 8:00 AM - 8:30 AM news embargo lifts. [A4]
Step 2: The volatility injection from the news embargo lifts can cause another Displacement [A1] or a Reversal [A3] for the Daily Range.
Step 3: London Close can provide the Opposing end of the Daily Range [A3]
Step 4: IPDA Close at 15:00 will place price action into another Consolidation [A4] until a new Daily Range is ready.
How Does Price Delivery influence the Daily Range?
Step One: Price Equilibrium
The Daily Range starts with a Price building an Equilibrium.
This is done with Asian Range.
How Does Price Delivery influence the Daily Range?
Step Two: Manipulation & Expansion
Price Manipulation occurs below the Asian Range Low during or before a News Event Release.
This is done with a Judas Swing.
How Does Price Delivery influence the Daily Range?
Step Three: Reversal
A Range Expansion occurs after Manipulation is done.
When the Low of the Day is formed, the Daily Candle will start expanding higher.
The low of the Day tends to form during London Open Kill Zone. (2:00 AM New York)
Price will keep expanding higher until London Open Kill Zone ends. (5:00 AM New York)
How Does Price Delivery influence the Daily Range?
Step Four: Consolidation or Retrace
After an expansion higher into the end of London Open Kill Zone…
Price will consolidate or retrace into 8:00 AM - 8:30 AM News Embargo Lifts.
How Does Price Delivery influence the Daily Range?
Step Five: Expansion (Displacement) and or Reversal
During New York Session Price can either:
1. Displace higher to create the daily Range until 10:00 AM - 11:00 AM New York Time.
2. Completely Reverse the Daily Range
3. If prices form the opposing end of the Daily Range in New York, London Close will a displacement into the close.
How Does Price Delivery influence the Daily Range?
Step six: Consolidation (Holding Pattern)
Once the Daily Range has been established, IPDA will consolidate into the Daily Close.
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